House Hacking in New Jersey

[Aditya Puttigampala]

Hi, My name is Aditya Puttigampala and I'm new to the Bigger Pockets community. I'm looking to house hack a multi-family home in New Jersey. I'm currently looking at Hoboken, Union City, Bayonne, and other parts of Jersey City. My goal is to break even with my cash flows so that I won't be paying anything in rent, while living in one of the units. Does anyone have experience house hacking or buying property and renting out units in these areas? I'm looking for some advice on how feasible it is to invest in these areas and how I can narrow my search down. Appreciate the help! :) 

[Ro Maga]

You asked “how feasible” house hacking was in some of North Jersey’s hottest markets so your monthly housing expenses would be zero out of pocket while only putting 3.5% down. Oh, and you want to avoid the less desirable neighborhoods while you’re at it. Wouldn’t that be nice?

Everyone of these folks who know these North Jerseys markets is telling you that what you are asking is not feasible unless you change at least one of your variables and by a lot. That is, you would either have to bring a HUGE down payment to the table, resign yourself to pay your monthly share of expenses, find an amazing off market deal (which may require an all cash offer depending on the state of the property) or you look in the far-from-desirable neighborhoods/towns to make that work.

It seems to me you have a couple of options here. You either take their advice, adjust your plan, and take action; or you could figure this out on your own by crunching the number a few hundred times and spend the next couple of years waiting for a unicorn or a radical change in the market (which does happen from time to time).

It may help to keep in mind that the first house purchase you make is unlikely to be your last.